- The GST Council meeting on 12 September may consider easing blocked input tax credit (ITC) rules under Section 17(5) of the CGST Act.
- Possible changes include allowing ITC on company vehicles for employee use and on group health/life insurance policies for employees.
- The Council may also protect buyers’ ITC claims if suppliers fail to remit taxes, as long as payment was made through banking channels.
- Other agenda items include fixing inverted duty structure refunds, simplifying GST on corporate guarantees, and rationalizing ITC on construction and works contracts.
- It may also explore smoother transfer of unutilized interstate ITC for businesses operating across multiple states.
Source: swarajyamag.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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